10 Questions to ask When Selecting a Financial Advisor

Basically choosing the best financial advisor is the most important and difficult decision anyone would like to take for securing their investment. But it is equally essential to select a best financial advisor as it is necessary to safeguard the long and hard strived money in safe backup.

Financial Plan

Here are the lists of 10 important questions necessary to ask your financial planner before you elect them:

  1. Experience: How many years of experience they have? Type of work done for clients?

This question will help you to decide whether the advisor will fit your need and expectations. The more the experience the more are the lessons and ways known by the advisor, this will aid you in any kind of situation emerging in your investment issues.

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  1. Qualifications: Check for their proper certification in the financial planner as many can easily assume as the financial advisor simply by rendering financial services whereas financial planning is not as easy as it seems. It requires more experience and good understanding of technical topics particularly tax planning, investments, retirement planning and estate planning.
  1. Services rendered: There are variety of services offered by the financial. It depends on their areas of niches, credentials, registration and the organization they work for.

Services offered are: Estate planning or taxation, some sell financial products like insurance, stocks, bonds and mutual funds. But they must be registered with appropriate state or federal authorities.

  1. Type of approach implemented: Check whether they consider your financial goal and meet your requirement in the approach they implement. They should not take any aggressive decision that can put you and your financial situation in a critical situation. They should be able to give you right set of choices in all circumstances depending on your objectives and cash flow.
  2. Number of advisors aiding with you: Check how many will work along with the selected advisor and whether they are well versed in the appropriate field.
  3. Mode of payment: How to pay the advisors? Some charge on hourly basis while some on monthly basis. While some are based on the percentage of client’s assets. While others are just commission based on selling some financial products.
  4. Expectation of the advisor: Ask their charge and estimate of their fee. The advisor should give a detailed plan of his charges with clear explanations of his charges.
  5. Other beneficiary from his advices: If the advisor is receiving any sort of commission on selling they should state that to their clients clearly.
  6. Verification of crime rate: Make a thorough background check of the advisors. Verify what government bodies are they regulated by? Ask frankly whether they are indulged in any sort of crime action by any regulatory body or industry association.
  7. Written proof: it is best to keep the services offered by the advisors in a written copy as this would be the long lasting and strong proof for your future reference.

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